Carr'S Milling Industries EBITDA dropped on 24.4% in 2015 and EBITDA Margin showed almost no change
09 Nov 2015 • About Carr'S Milling Industries (
$CRM) • By InTwits
Carr'S Milling Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 4.7% in FY2015 vs. 4.8% in FY2014 vs. 3.6% in FY2011
- Carr'S Milling Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 1.3%.
- CAPEX is quite volatile: 18.2 in 2015, 24.1 in 2014, 18.6 in 2013, 10.2 in 2012, 5.4 in 2011
- The company has business model with low profitability: ROIC is at 8.5%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Carr'S Milling Industries ($CRM) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 373.3 | 404.1 | 468.1 | 429.0 | 331.3 | -22.8% |
| Gross Profit | 41.1 | 43.9 | 48.6 | 50.3 | 42.7 | -15.0% |
| SG&A | 32.0 | 31.9 | 29.8 | 29.8 | 30.6 | 2.9% |
| EBITDA | 13.6 | 16.7 | 18.8 | 20.5 | 15.5 | -24.4% |
| Net Income | 23.4 | 8.5 | 11.0 | 11.4 | 12.0 | 5.4% |
Balance Sheet
|
|---|
| Cash | 33.3 | 23.3 | 22.9 | 17.3 | 20.1 | 16.1% |
| Short Term Debt | 26.4 | 14.2 | 15.5 | 19.7 | 18.7 | -4.9% |
| Long Term Debt | 2.3 | 11.6 | 29.4 | 22.2 | 25.7 | 16.0% |
Cash flow
|
|---|
| Capex | 5.0 | 8.9 | 9.9 | 7.2 | 4.6 | -35.8% |
Ratios
|
|---|
| Revenue growth | 25.2% | 8.2% | 15.8% | -8.4% | -22.8% | |
| EBITDA growth | 23.7% | 23.3% | 12.3% | 9.1% | -24.4% | |
| Gross Margin | 11.0% | 10.9% | 10.4% | 11.7% | 12.9% | 1.2% |
| EBITDA Margin | 3.6% | 4.1% | 4.0% | 4.8% | 4.7% | -0.1% |
| Net Income Margin | 6.3% | 2.1% | 2.4% | 2.7% | 3.6% | 1.0% |
| SG&A, % of revenue | 8.6% | 7.9% | 6.4% | 6.9% | 9.2% | 2.3% |
| CAPEX, % of revenue | 1.3% | 2.2% | 2.1% | 1.7% | 1.4% | -0.3% |
| ROIC | 10.8% | 12.3% | 11.7% | 11.6% | 8.5% | -3.1% |
| ROE | 51.0% | 14.5% | 16.9% | 15.3% | 14.4% | -0.9% |
| Net Debt/EBITDA | -0.3x | 0.1x | 1.2x | 1.2x | 1.6x | 0.4x |
Revenue and profitability
The company's Revenue dropped on 22.8% in FY2015. EBITDA Margin showed almost no change in FY2015.
Gross Margin increased slightly on 1.2 pp from 11.7% to 12.9% in FY2015. SG&A as a % of Revenue increased on 2.3 pp from 6.9% to 9.2% in FY2015.
Net Income marign increased slightly on 0.97 pp from 2.7% to 3.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.4% in FY2015. CAPEX/Revenue decreased slightly on 0.80 pp from 2.2% in FY2012 to 1.4% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at good ROE (14.38%) while ROIC is low (8.48%). ROIC decreased on 3.1 pp from 11.6% to 8.5% in FY2015. ROE decreased slightly on 0.87 pp from 15.3% to 14.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 2.9x. Net Debt / EBITDA jumped on 0.4x from 1.2x to 1.6x in FY2015. Debt increased on 6.2% in FY2015 while cash jumped on 16.1% in FY2015.
Appendix 1: Peers in Food Producers
Below we provide Carr'S Milling Industries benchmarking against other companies in Food Producers industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ros Agro ($AGRO) | 29.7% | -13.2% | 8.2% | 78.6% | |
| Cherkizovo Group OJSC ($CHE) | 20.0% | 12.6% | 8.1% | 31.5% | |
| Kakuzi ($KAKU) | -26.2% | 0.3% | -11.5% | 22.1% | |
| R.E.A.Hldgs ($RE.B) | 29.6% | -15.7% | -11.3% | 13.9% | |
| Tongaat Hulett Ltd ($THL) | | 24.8% | 19.0% | 9.3% | 2.8% |
| |
|---|
| Median (19 companies) | 25.8% | 12.6% | 6.3% | -0.2% | -2.1% |
|---|
| Carr'S Milling Industries ($CRM) | | 8.2% | 15.8% | -8.4% | -22.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Walcom Group Ltd ($WALG) | 63.5% | 62.6% | 63.2% | 62.2% | |
| Narborough Plantations ($NBP) | | 64.9% | 55.5% | 59.7% | 54.6% |
| R.E.A.Hldgs ($RE.B) | 56.7% | 44.4% | 37.3% | 36.8% | |
| Zambeef Products ($ZAM) | 32.3% | 33.6% | 34.5% | 33.7% | |
| Ros Agro ($AGRO) | 19.5% | 28.8% | 22.1% | 33.6% | |
| |
|---|
| Median (16 companies) | 26.3% | 28.8% | 23.5% | 32.7% | 22.4% |
|---|
| Carr'S Milling Industries ($CRM) | 11.0% | 10.9% | 10.4% | 11.7% | 12.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Narborough Plantations ($NBP) | | 58.1% | 42.5% | 39.6% | 37.4% |
| Mhp Sa ($MHPC) | 32.6% | 33.2% | 26.1% | 37.0% | |
| R.E.A.Hldgs ($RE.B) | 52.8% | 35.3% | 34.0% | 33.2% | |
| Avangardco Investments Public Ltd ($AVGR) | 44.4% | 44.5% | 45.6% | 30.9% | |
| Ros Agro ($AGRO) | 10.9% | 20.6% | 15.5% | 28.1% | |
| |
|---|
| Median (19 companies) | 10.9% | 16.4% | 10.9% | 11.8% | 7.0% |
|---|
| Carr'S Milling Industries ($CRM) | 3.6% | 4.1% | 4.0% | 4.8% | 4.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Agriterra Ltd ($AGTA) | 18.9% | 54.8% | 49.5% | 43.0% | |
| Kakuzi ($KAKU) | 15.5% | 20.1% | 20.8% | 22.0% | |
| Avangardco Investments Public Ltd ($AVGR) | 26.3% | 51.1% | 28.0% | 18.4% | |
| Asian Citrus Hldgs ($ACHL) | 14.9% | 19.3% | 28.6% | 17.7% | 14.3% |
| R.E.A.Hldgs ($RE.B) | 13.2% | 40.3% | 10.9% | 11.8% | |
| |
|---|
| Median (19 companies) | 13.2% | 7.4% | 8.2% | 4.8% | 5.1% |
|---|
| Carr'S Milling Industries ($CRM) | 1.3% | 2.2% | 2.1% | 1.7% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ros Agro ($AGRO) | 5.4% | 7.2% | 4.0% | 23.8% | |
| Cherkizovo Group OJSC ($CHE) | 11.7% | 13.5% | 4.8% | 22.4% | |
| Fyffes ($FFY) | 8.8% | 16.4% | 17.2% | 18.5% | |
| Mhp Sa ($MHPC) | 19.4% | 18.4% | 11.2% | 17.6% | |
| Origin Enterprises ($OGN) | 15.4% | 13.2% | 15.3% | 16.9% | 20.1% |
| |
|---|
| Median (19 companies) | 14.0% | 12.2% | 5.2% | 12.4% | 6.2% |
|---|
| Carr'S Milling Industries ($CRM) | 10.8% | 12.3% | 11.7% | 11.6% | 8.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zambeef Products ($ZAM) | 3.0x | 6.3x | 4.7x | 4.8x | |
| R.E.A.Hldgs ($RE.B) | 1.2x | 3.1x | 4.4x | 3.9x | |
| Ukrproduct Group ($UKR) | 4.3x | 2.7x | 4.4x | 3.4x | |
| Glanbia ($GLB) | 3.1x | 1.9x | 1.7x | 2.3x | |
| Mhp Sa ($MHPC) | 2.0x | 2.2x | 2.9x | 2.2x | |
| |
|---|
| Median (17 companies) | 1.7x | 1.4x | 1.6x | 1.6x | 1.6x |
|---|
| Carr'S Milling Industries ($CRM) | -0.3x | 0.1x | 1.2x | 1.2x | 1.6x |
